1. QRT’s ₩10.7B Convertible Bond Offering: What Happened?

QRT announced on September 16, 2025, a ₩10.7 billion convertible bond offering, representing 4.94% of the total outstanding shares. The offering is a private placement to Shinsungjang Semiconductor No. 1 New Technology Business Investment Association. The conversion price is set at ₩17,674 with a 0.0% coupon rate (zero-coupon), and the conversion period starts on September 30, 2025, and ends on September 16, 2030.

2. Why the Convertible Bond Offering? What’s the Impact?

  • Positive Impacts:
    • Securing Operating and Investment Funds: Increased capacity for future growth investments
    • Attracting Specialized Investors: Participation of Shinsungjang Semiconductor Investment Association signals positive outlook on QRT’s growth potential
    • Enhanced Financial Flexibility: Zero-coupon, long-term maturity reduces short-term financial burden
  • Neutral/Considerations:
    • Potential Dilution Effect: Possible increase in outstanding shares upon conversion after 5 years. Currently limited.
    • Use of Proceeds: Alignment with company’s growth strategy is crucial
    • Market Conditions and Interest Rate Fluctuations: Potential impact on conversion demand and stock price

3. QRT’s Current Status and Future Outlook

QRT specializes in semiconductor reliability testing and analysis services and equipment development/sales for advanced industries like AI, 5G, aerospace, and defense. For the first half of 2025, QRT reported revenue of ₩32.75 billion (up 10.8% YoY) and operating profit of ₩1.74 billion (up 36.5% YoY). A positive future outlook is expected, driven by semiconductor market growth and QRT’s technological competitiveness.

4. What Should Investors Do?

While this convertible bond offering can be a stepping stone for QRT’s growth, investors should closely monitor the potential dilution effect and the company’s plans for utilizing the funds. Keep an eye on future announcements regarding the use of proceeds and earnings releases. Continuous monitoring of stock price trends, interest rate and exchange rate fluctuations, and market trends in key business areas is recommended.